A House bill introduced by Rep. Ro Khanna would restrict noncompete agreements for workers below set income thresholds, putting job mobility before Congress as a wider federal rule remains unenforceable.
Khanna, D-Calif., introduced H.R. 10879 on Thursday, Oct. 22, and Rep. Anna Paulina Luna, R-Fla., joined as a cosponsor. Congress.gov says the bill would bar noncompete agreements for workers whose annual income falls below specified thresholds. It was referred to the House Energy and Commerce Committee.
Fox Business said a bill copy it obtained sets a $100,000 annual income limit and extends the restrictions to existing and future agreements after 30 days. Fox Business also reported that Khanna told Fox News Digital the proposal should be easy to support, while Luna said it would give Americans more control over their opportunities and earning potential.
The Federal Trade Commission (FTC) says its 2024 nationwide noncompete rule is not in effect or enforceable. A district court blocked the rule on Aug. 20, 2024, and the FTC said it took steps to dismiss its appeal on Sept. 5, 2025. The rule would have applied broadly to new agreements.
The Federal Reserve Bank of Minneapolis says noncompete agreements can reduce workers' bargaining power and limit their job options. It also says the clauses may make it harder for competing employers to recruit workers and for entrepreneurs to start businesses.
A 2021 study in Management Science estimated that Oregon's 2008 policy ending enforcement of noncompetes for hourly workers raised their average hourly pay by 2% to 3%. Researchers found larger increases in occupations where such agreements were more common. The findings concern Oregon and do not measure the effect of H.R. 10879.
Congress.gov lists no hearing, markup or vote on the bill.
